The jobs market had a very strong September

• The US economy added 254,000 jobs in September, way above the forecast of 147,000.
• The unemployment rate unexpectedly decreased to 4.1% in September.
• The Fed is pivoting away from fighting inflation to supporting the labor market.

The US economy saw way better job growth than expected in September. It added 254,000 jobs during the month, blowing away the forecast of 147,000.

Additionally, the unemployment rate unexpectedly fell to 4.1%, below the consensus estimate of 4.2%. It marks the second straight monthly decline.

The encouraging numbers doubled down on a labor market that’s showing signs of strength after a slowdown. The Federal Reserve signaled a pivot from fighting inflation to supporting the job market with a 50-basis-point interest rate cut in mid-September, the first cut in four years.

The strong report will steer the central bank’s next rate decision in November, and is likely to reduce odds of a second straight jumbo-sized rate cut. The market is currently assigning a 66% probability that the next move will be 25 basis points, according to the CME FedWatch tool.

With the presidential election now looming just a month away, jobs and the economy have consistently been at the top of Americans’ minds. In a poll this week by The Economist and YouGov, 73% of respondents said jobs and the economy were “very important” issues to them. Twelve percent said it was their most important issue, which tied with immigration and ranked behind only inflation and prices (23%) as the most commonly cited answer.

This is a developing story. Please check back for updates.